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Price of Marijuana Could Skyrocket Due to Wildfires

A series of wildfires have caused massive damage to several part of California. And one of the industries most affected by the fires was marijuana, and consumers could soon face the repercussions. 

Experts believe the price of marijuana could increase by as much as 20 percent due to wildfires burning massive amounts of marijuana crops. The more than two dozen wildfires burnt an area of more than 200,000 acres, and dozens of marijuana farms were affected by the blazes. Marijuana cultivators are set to harvest their crops later this month, and those cannabis plants are expected to last the state through 2018. But with a decreased harvest, there will be less marijuana supply for when the state launches legalized recreational marijuana on January 1st.

BDS Analytics, a marijuana data insight company, determined the 20 percent number based on similar circumstances in other states. Major disruptions in cannabis supply chains in Oregon, Washington and Colorado all led to 10 to 20 percent increase in prices. They usually only lasted one to three months.

But it is possible that California's wildfires may cause more disruption. There are between 3,000 and 9,000 marijuana farms in Sonoma County, an area that was particularly hit hard by the natural disasters. And even if the crops were burned, smoke damage can affect the plants and make them worthless to sell. 

California also grows about half of the marijuana used throughout the United States. So the affects of the wildfires may be felt throughout the country.

An expert from BDS Analytics said it won't be 100 percent clear how much the marijuana industry will be affected until farmers determine the full extent of damage in the coming weeks.


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